Wyomissing, Pa-based, $1.28 billion-asset VIST Financial reported insurance brokerage fee income in the third quarter rose 6.8% to $3.26 million, up from $3.05 million in third quarter 2008, bolstered by the September 2008 acquisition of Fisher Benefits Consulting. In contrast, brokerage and investment advisory fee income fell 40% to $112,000, down from $186,000, and bank-owned life insurance (BOLI) dropped over 44% to $95,000, down from $171,000. Insurance, investment advisory and BOLI income comprised respectively, 95.9%, 3.3% and 2.8% of noninterest income of $3.4 million compared to a noninterest loss of $2.04 million a year ago, when the company took $7.09 million in impairment losses, compared to $2 million in impairment losses in third quarter 2009. Net interest income on a 3.24% net interest margin fell 10.7% to $7.64 million, down from $8.56 million, as loan loss provisions increased by $875,000 to $1.04 million. The company reported net income of $528,000, compared to a net loss of $4.61 million in third quarter 2008. VIST Financial President and CEO Robert Davis said, “Positive results continue to be significantly offset by additional credit provisioning and non-cash other-than-temporarily-impaired charges.” Increased non-performing loans are tied to two commercial construction and development projects, the company said. VIST announced it will be amending its 2008 through third quarter 2009 filings “to revise the fair value on certain Junior Subordinated Debentures and cash flow hedges related to those debentures.” Davis said all third-quarter balance sheet items reported remain unchanged. In 2008, VIST Financial reported $11.3 million in insurance brokerage income, which comprised 61.4% of its noninterest income. The company ranked 16th in insurance brokerage earnings among U.S. bank holding companies (BHCs) with assets between $1 billion and $10 billion, according to the Michael White-Prudential Bank Insurance Fee Income Report.
Monday, December 14, 2009
INSURANCE BROKERAGE EARNINGS COMPRISE 96% OF NONINTEREST INCOME AT VIST
Wyomissing, Pa-based, $1.28 billion-asset VIST Financial reported insurance brokerage fee income in the third quarter rose 6.8% to $3.26 million, up from $3.05 million in third quarter 2008, bolstered by the September 2008 acquisition of Fisher Benefits Consulting. In contrast, brokerage and investment advisory fee income fell 40% to $112,000, down from $186,000, and bank-owned life insurance (BOLI) dropped over 44% to $95,000, down from $171,000. Insurance, investment advisory and BOLI income comprised respectively, 95.9%, 3.3% and 2.8% of noninterest income of $3.4 million compared to a noninterest loss of $2.04 million a year ago, when the company took $7.09 million in impairment losses, compared to $2 million in impairment losses in third quarter 2009. Net interest income on a 3.24% net interest margin fell 10.7% to $7.64 million, down from $8.56 million, as loan loss provisions increased by $875,000 to $1.04 million. The company reported net income of $528,000, compared to a net loss of $4.61 million in third quarter 2008. VIST Financial President and CEO Robert Davis said, “Positive results continue to be significantly offset by additional credit provisioning and non-cash other-than-temporarily-impaired charges.” Increased non-performing loans are tied to two commercial construction and development projects, the company said. VIST announced it will be amending its 2008 through third quarter 2009 filings “to revise the fair value on certain Junior Subordinated Debentures and cash flow hedges related to those debentures.” Davis said all third-quarter balance sheet items reported remain unchanged. In 2008, VIST Financial reported $11.3 million in insurance brokerage income, which comprised 61.4% of its noninterest income. The company ranked 16th in insurance brokerage earnings among U.S. bank holding companies (BHCs) with assets between $1 billion and $10 billion, according to the Michael White-Prudential Bank Insurance Fee Income Report.
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